Tata Chemicals Ltd's Q2 FY27 numbers came in soft. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 07, 2026 |
|---|---|
| Revenue (Q2) | Rs. 4,177.00 Cr (+7.74% YoY) |
| PAT (Q2) | Rs. -122.00 Cr |
| EBITDA margin | 9.12% (-473 bps YoY) |
| EPS (Q2) | Rs. -4.79 |
Revenue grew 7.74% YoY to Rs.4,177 Cr but EBITDA fell 29.05% YoY to Rs.381 Cr (9.12% margin) and the company swung to a Rs.(122) Cr loss to equity shareholders, driven by soda-ash oversupply in Industrial Essentials (Rs.(120) Cr segment loss) and freight/power cost inflation. Cash conversion was weak (H1 CFO Rs.64 Cr vs EBITDA Rs.936 Cr) with FCF at Rs.(447) Cr, while the India standalone business remained profitable at a 22.41% EBITDA margin. Management's capex and net-debt guidance remain on track, but the consolidated P&L stays hostage to the Industrial Essentials soda-ash cycle.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "likely in-line to modestly ahead YoY" | Rs.4,177 Cr, +7.74% YoY | Played out |
| Consolidated margin | "likely compressing… coal reversal the single biggest known Q2 margin swing" | 9.12% vs 13.04% Q1 / 13.85% YoY | Played out |
| Kenya drag | Ongoing, unquantified pre-call | Rs.21 Cr quantified loss in the filing; suspension persisted | Played out |
| India volume normalization | Would support top line | Standalone revenue +8.22% YoY; LE +11.10% YoY | Played out |
| Net debt after SVM outflow | Watch vs ~Rs.6,000 Cr | Rs.6,181 Cr — modest rise | Played out |
| SVM contribution (~19 days) | Partial-quarter slug | No unit-level disclosure | Not observable |
| UK gas headwind / one-off reversal | Clear cost headwind expected | Filing silent at unit level | Not observable |
| Import protection / India pricing | No relief expected in Q2 | Filing silent; LE standalone margin held at 27.19% | Partially |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 capex ~Rs.1,200 Cr (~FY26 depreciation) | Q1 FY27 earnings call, 27 Jul 2026 | H1 consol capex Rs.511 Cr (annualised ~Rs.1,022 Cr) | On Track |
| Net debt ex-leases stable ~Rs.6,000 Cr through FY27 | Q1 FY27 earnings call, 27 Jul 2026 | Rs.6,181 Cr at Sep-26 (vs Rs.5,692 Cr Jun-26) | On Track |
| India sustainable EBITDA margin ~18% as coal gains reverse | Q1 FY27 earnings call, 27 Jul 2026 | Standalone EBITDA margin 22.41% (from 28.41% in Q1); unit-level India margin not disclosed — direction | On Track |
| Proposed Rs.1,500 Cr NCD | Company announcement with FY26 results | No update in the Q2 filing; long-term borrowings raised Rs.1,427 Cr in H1 | Too Early |
| Project timelines (IVSD Mithapur Q1FY28; Cuddalore silica Q4FY28; dense soda ash Mithapur Q3FY28; Valinokkam Q2FY29) | Investor communications, 2026 | Not yet due; CWIP Rs.908 Cr | Too Early |
| "Challenging environment in Industrial Essentials" | Q1 FY27 call framing | IE result −Rs.120 Cr, worst in the restated series (vs +Rs.16 Cr a year ago) | Confirmed |
| "Resilient performance… higher sales and production volumes" | Q1 FY27 call framing | Consolidated loss to owners widened to Rs.(122) Cr; EBITDA −29% YoY — resilience did not extend to the consolidated bottom line | Contradicted for Q2 |
| Coal inventory gains "will come back to impact the cost in the next quarter" | Q1 FY27 call | Standalone EBITDA margin fell 28.41% → 22.41% QoQ; IE standalone margin 15.90% → 4.64% | Confirmed |
| India margin sustainable at ~18% (GC 32–33%) | Q1 FY27 call | Standalone 22.41%, still above guide; unit level not disclosed | Too Early |
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| EBITDA | 537 | 345 | 274 | 555 | 381 |
| Margin | 13.85% | 9.7% | 7.97% | 13.04% | 9.12% |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.